What Is A Prenuptial Agreement and What Does It Protect?
Immediately after Jeff Bezos and his wife split amicably, word got out that their marriage didn’t have a prenuptial arrangement. In an instant, Bezos’s $137 Billion fortune, much like the couple was divided in half. Nobody with such a significant amount of money should follow their lead. That leads us to ask many questions. What purpose does a prenuptial agreement serve? What do they protect and how does one best utilize the services of a divorce lawyer to handle such matters?
A prenuptial agreement is a private and consensual agreement between married couples that outlines how property will be split after a divorce or death. Each state has its own set of rules governing the issuance, validity, and enforcement of the agreement. That’s where Austin LRS comes in. Before getting the prenuptial agreement, the couple can select the best state that best suits their terms of the prenup in regards to them and their family.
What is a Prenuptial Agreement
In most states, the partners have to reveal their financial records and assets to each other. Both parties should have an attorney present – told you we were useful. A prenup does not fully entitle each party to their assets. Instead, it dictates fairness. For instance, after 15 years of marriage, your prenuptial agreement will make changes in your lifestyle into account (children, pay raises, etc). Most couples include some form of compensation in the agreement. This ensures adequate protection of each party moving forward. Depending on the state, full disclosure of possible inheritance is a necessity. Despite all this, take precautions. When receiving counsel, make sure the other party has counsel as well. Use our attorney referral services if you ever need a Lawyer on short notice. Through this measure, you ensure the validity of the prenup.
Are Prenuptial Agreements a Good Idea?
Getting a prenup is not a bad idea. Nonetheless, a divorce attorney advises you on the right move according to your situation. While it is a good idea to have one, it’s not entirely necessary. Prenuptial agreements are especially useful for couples with a substantial asset imbalance. For instance, to further reiterate our point, Bezos’ premarital assets also took a hit. A good prenuptial agreement provides financial security to the ‘poorer’ half of the couple, delineates responsibilities such as debts, and protects the businesses of those involved.
Although many consider most prenups ‘financial agreements’, this is not entirely true. They also address many decisions concerning child custody, holidays, and which religion the kids practice. Such issues undoubtedly create major contentions later on in the marriage. Admittedly, it’s difficult to discuss such matters. That’s why we extend our services to streamline the process.
Which Details Are Included In A Prenuptial Agreement?
The agreement specifies the difference between marital property and separate property. Since different states have varying laws that govern this distinction, it’s essential to consult a divorce attorney. The agreement protects the couple from each other’s debts. Without a prenup, marital properties are fair game for creditors looking for a settlement. Moreover, if you have kids from a different relationship and want to ensure they get some part of the inheritance, you can include these details in the prenup. Among the many reasons you should find a lawyer in Texas with experience in family law, a prenup ensures your estates are distributed the best way you see fit after death or divorce.